Spy,
I don't see anything in that video which precludes the feature from being present. The feature is not displayed, but it is not as if they tagged a moving target then missed.

I'm not 100% sure as to what the development history of fighter targeting systems has been, but I feel it is fairly safe to say they were in use by the early 90s. An Ipad bests almost all the supercomputers of that era, if not all. Maybe an iPhone.

I am not sure it is possible to have the function shown without limited ability to track a moving target as the sensors in the optic are also moving as is the rifle it is on. Compensating for movement on one ens is not all that different than compensating on the other.

Of course, it could use the guts of a Wii controller, but I doubt that is the system used. Even the latest versions would probably not be MOA accurate at 300 yards. Given how advanced facial recognition/license plate/etc software is I am sure it could be adapted to track a persons profile or the area around the tag without too much trouble.